An internal Melbourne Racing Club (MRC) investigation has found 24 memberships linked to chairman John Kanga and his family were purchased on a single credit card ahead of his successful push to take control of the $1 billion club.
The memberships were part of the 170 signatures Kanga gathered to call a special general meeting in August last year, a petition later ruled invalid.
Despite the setback, Kanga’s allies were elected weeks later, securing him the chairmanship.
Read more: Racing into history: John Kanga becomes Melbourne Racing Club’s first Greek Australian chairman
According to The Age, club documents show most of the 170 signatories had not attended a race meeting in the previous year, and many had only recently joined.
The MRC confirmed the 24 family-linked memberships but said they complied with the rules and were part of a broader recruitment drive.
“Any memberships purchased by chairman John Kanga or his family were legitimate, consistent with the rules, and for family and friends wishing to support the club,” the MRC said.
“Payments made on behalf of family or friends are not unusual and do not breach the rules.”
There is nothing in the MRC or Racing Victoria constitutions that states it is against the rules to buy multiple memberships for other people.
Kanga rejected allegations of governance breaches lodged with Racing Victoria and the Racing Integrity Commissioner, describing them as “ridiculous and without foundation”.
Since his election in October, seven directors and several executives have resigned, and the club has reported a $17.3 million loss, with debt climbing to $178 million.
The MRC expects to reduce that debt if a $195 million land sale at Caulfield proceeds.
